How To Stop The Debt Cycle?
Have you paid off debt only to get back in debt again
?
In order to stop any cycle a change has to occur. In this case, the change needs to begin in your mind. When you realize debt isnt a money problem. In fact, its not even an issue of financial literacy the cycle is quite easy to stop. Most of us understand principal, interest, fees, and other financial terms. However, were not aware of our subconscious separation of the words credit and debt. Even though, consciously we understand theyre one in the same.
The debt cycle begins with word play. If lenders offered customers the opportunity to owe them money, most would decline and run for the hills. Instead, the word credit is used to trick the mind into believing your not entering into an employment agreement. The term debt free bread means money owned not owed which everyone should want. When you acquire credit you begin to work for someone else instead of yourself. For example, most people aspire to obtain a mortgage which usually carries a 30 year sentence. Luckily, my familys attempt to do the same changed our relationship with money forever.
After applying for a mortgage with Wells Fargo, we discovered we couldnt get pre-approved without extra measures like a manual underwriting complete with letters of explanation. The feeling of being rejected was a much needed wake-up call. We realized our finances werent healthy, managing debt is idiotic, and paying minimum payments on time wasnt enough. That day changed my life because it began my quest to learn more about money, credit, and buying a house.
As a result, were now on a debt free journey and never want to acquire credit i.e. debt ever again. So far, my husband and I have managed to payoff $9318.00 of student loan debt in just 7 months. We didnt receive a windfall of money. Nor are we a family with two incomes or no children. In fact, my husband is a hardworking blue collar man averaging between $45,000 and $65,000 a year. Meanwhile, I stay at home with our two beautiful boys with special needs. Id like to share the principals that allowed us to change our relationship with money. Below Ive listed some questions to ask yourself to stop the cycle of unconscious spending.
What is the difference between dreaming and imagining a debt free life?
Imagining leads to action which creates a readiness and desire to do something today. Whereas, dreaming exist in the walls of your mind, only coming to fruition at an unknown day and hour. Are you dreaming or imagining a debt free life? Your answer makes all the difference. Its well understood that all actions begin with a thought. So, decide to imagine a debt free future, then begin to build.
How to pave a road to financial freedom?
First, you need to understand why being debt free is important to you. If your reasons arent clear or easily forgotten when temptation arises, your debt free journey will come to a screeching halt. In order to increase your chances of success you need to remember why your relationship with money must change.
Start by getting small pieces of paper and a pen. If you have a significant other, they should do the same. Begin to write down all the reasons you need and want to become debt free. Then place the notes in a clear jar labeled, Debt Free Dreams. Everyday remind yourself why youve chosen a road rarely traveled by pulling out a note as soon as you wake-up.
This step is important because most of us are in debt due to unconscious spending. Allow your own thoughts cemented on paper to remind you of your financial goals. When youre tempted to cheat yourself (and you will be tempted) the jar will allow you to draw strength from your own words. You can write similar thoughts in a small memo pad that can be carried in your purse or pocket while on the go.
How are these tips going to keep me out of debt?
Im sure most people reading this post expected to read about principal, interest, or payment strategies. The reason financial advice shouldnt be given in order to stop a debt cycle is because the problem isnt a matter of financial literacy. The problem is living an unconscious life. People arent in debt because they cant count. Were in debt because we spend our money unconsciously, without purpose or reason.
by: Jackque
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